In a significant triumph for the country’s banking sector, Sonali Bank PLC, the largest state-owned commercial lender in Bangladesh, has reported a breakthrough in recovering funds from the infamous Hallmark Group. Managing Director and CEO Md Shawkat Ali Khan confirmed during a press briefing on Tuesday that the bank successfully clawed back 300 crore BDT from the group over the past year, marking a turning point in the aftermath of the nation’s most notorious financial scam.
A Historic Financial Turnaround
The recovery is part of a broader revitalisation strategy that has seen Sonali Bank transition from a deficit-stricken institution to a highly profitable entity. In the 2024 calendar year, the bank achieved a record-breaking operating profit of 8,017.35 crore BDT, a massive leap from the 5,695 crore BDT recorded the previous year.
This surge in profitability has allowed the bank to achieve something previously thought impossible for a state-owned lender: the complete elimination of its capital shortfall. For decades, Sonali Bank operated under the shadow of a multi-billion Taka capital deficit, often requiring government intervention.
“The capital shortfall has been a long-standing stigma for state-owned banks,” remarked Mr Khan. “As of this year, Sonali Bank has entirely cleared its deficit. This is a monumental achievement for our financial health and institutional reputation.”
Debt Recovery and Asset Liquidation
Beyond the 300 crore BDT from Hallmark, the bank’s aggressive recovery drive targeted its top 20 defaulters, resulting in a total cash recovery of 1,203 crore BDT. To settle the remaining Hallmark liabilities, the bank has initiated the auctioning of the group’s industrial machinery and physical assets.
| Financial Metric | 2024 Performance (Actual) | 2025–2027 Targets |
| Operating Profit | 8,017.35 Crore BDT | Target: 10,000+ Crore BDT |
| Net Profit (Estimated) | 1,500 Crore BDT | Aiming for sustained growth |
| Classified Loan (NPL) Ratio | 15.4% | Target: Below 10% by 2027 |
| Capital Status | Shortfall Eliminated | Maintain Basel III compliance |
| Hallmark Cash Recovery | 300 Crore BDT | Ongoing asset auctions |
Strategic Challenges: The Rooppur Dues and Loan Concentration
While the recovery news is positive, the Managing Director highlighted significant outstanding receivables from the public sector. Specifically, Sonali Bank is owed approximately 5,500 crore BDT in commission fees for managing the Letter of Credit (LC) operations for the Rooppur Nuclear Power Plant. Securing these funds from the government remains a top priority to further fortify the bank’s capital base.
Furthermore, the bank is actively working to decentralise its loan portfolio. Currently, 37% of the bank’s total credit is concentrated within just five branches. Under a memorandum of understanding with the central bank, Sonali Bank is redistribution these large loans to other branches to mitigate systemic risk and ensure long-term stability.
The bank’s leadership concluded by asserting that since the 2012 Hallmark scandal, internal governance has been overhauled, restoring public trust and leading to a significant influx of new deposits.